Establishing credit and good health can go hand in hand

We live in a country where you simply cannot function without credit. If you need a rental car, a place to live, a planet ticket, a job or even a paid-in-advance movie ticket, you’ll need a credit card, and that generally requires some sort of credit history. But like the old question, “Which came first, the chicken or the egg?” the credit conundrum is a tough one. You cannot obtain credit unless you already have credit. If you have plenty of credit, lenders will be happy to give you a lot more. If you have none, well, you have none coming. It’s a tough situation which everyone not named Paris Hilton has encountered at some point in their lives.

One way to establish credit is to find a credit card from a company that specializes in catering to people with poor credit. These cards are often “secured credit cards” which means that you will have to put up a sizable cash deposit before they give it to you. This deposit will be equal, or perhaps somewhat less, than your limit. You may need to provide a $1000 deposit to get a $500 or $1000 limit. And the card will include high interest rates and annual fees. But it is a start, and if you use it regularly and pay your bill on time, you can establish a good credit score in fairly short order.

Another great idea, and one that isn’t too well known, is joining a health club. Sure, it sounds strange, but health clubs aren’t in the business of getting people in shape; they are in the business of selling memberships. Most clubs sell memberships to far more people than their facilities can handle, but that’s OK, because few people use the facilities after the first few months. They sign a contract, come for a while and usually stop coming for one reason or another. The health club doesn’t care, because they signed the member to a two or three year contract, often with payments coming directly out of the member’s bank account.

Here’s where the membership helps your credit. Most health clubs, especially the national chains, will report whether or not you pay on time to the credit bureaus. And here’s the best part - the rarely, if ever, turn anyone down for a membership. So, check with your local club to make sure that they report to the credit bureaus and then work out the best deal you can for a membership. Keep in mind that many clubs have occasional “specials”; you may have to wait a bit to get the best deal. Then sign up, make your payments, and earn your credit. By the time your contract is paid off, you should have a nice entry in your credit report.

Oh, and while you’re paying for a membership, go ahead and work out. Why not? You’ve paid for it!

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